MOSCOW, Feb 17: Russian electricity monopoly Unified Energy System (UES) on Saturday signed an 83.6bn rouble ($3.2bn) deal to expand the energy network in the southern region of Krasnodar over the next five years.

The agreement with the administration of Krasnodar region, where the Black Sea city of Sochi is located, will see UES invest $1.3 billion in new generating capacity and a further $1.9 billion in the region's electricity network by 2011.

UES said in a statement electric power consumption in Krasnodar region grew 6.3pc year-on-year in 2006. It is expected to grow further in the next few years.

"The agreement ... seeks to improve the reliability of electricity supply to customers and increase the network throughput capacity," the energy monopoly said.—Reuters